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Aquaculture In NC
Matt [email protected]
252-633-1477Aquaculture Specialist
NC Dept. of Agriculture and Consumer Services
What we’ll talk about
• Regulations– Freshwater species– Marine species
• Resources– Technical assistance– Business planning and permitting assitance
• Parts of a business plan
Freshwater Aquaculture
• General Statute 106-758– 21 species covered– Other freshwater species must be approved
by NC Wildlife Resources Commission• Application to culture non-approved species
• 3 categories of licenses– Production License– Fee-fishing License– Holding Tank/Pond License
Marine Aquaculture
• Regulated by NCDMF• Finfish
– Aquaculture Operations Permit– Currently only flounder specified for
aquaculture in regulations• Shellfish
– Shellfish bottom lease– Water column lease
Technical Assistance• NC Cooperative
Extension Service– Aquaculture Specialists
• Mike Frinsko- Trenton NC• Steve Gabel- Edenton NC• Molly Sandfoss- Marion
NC• Skip Thompson-
Waynesville NC• Dennis Delong- Raleigh
NC
• NCSU– Dr. Craig Sulivan– Dr. Tom Losordo– Dr. Harry Daniels– Dr. Jeff Hinshaw– Dr. David Green
• NC SeaGrant– Dr. Marc Turano
Business Planning and Technical Assistance
• NC Dept. of Agriculture and Consumer Services– Debra Sloan- Franklin NC– Matt Parker- New Bern NC– William Small- Elizabeth City, NC
• Promotions
Online Assistance
• NC Cooperative Extension Website– http://www.ces.ncsu.edu/nreos/wild/aquaculture/index.html
• NCDA&CS Website– http://www.ncagr.com/aquacult
• Aquanic.org• Southern Regional Aquaculture Center
– http://www.msstate.edu/dept/srac/
Quick and Dirty Business Plan Outline
• Executive Summary• Company Description• Marketing Strategy and Implementation• Financial Plan
Executive Summary
• A 1-2 page summary of the entire plan– Objectives– Mission– Keys to success
• Even though it is first, write it last
Company Description
• Location and facilities• Outline of startup plan• Organizational setup
– Corporation– Partnership– Sole Proprietorship– Describe all owners
Marketing
• Perhaps the most important section• 5 P’s
– Product– Place (Distribution)– Promotion– Price– Politics
• Describe your market in general including competition
Changes in Sales of Hybrid Striped BassChanges in Sales of Hybrid Striped BassDuring 1996During 1996--2007 (pounds/year) 2007 (pounds/year)
Kent SeaTech CorporationKent SeaTech CorporationData from state Aquaculture Extension Programs and a survey of mData from state Aquaculture Extension Programs and a survey of major producers ajor producers -
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Fresh
Live
PricePrice--Volume Relationship for FarmedVolume Relationship for FarmedHybrid Striped Bass During 1984Hybrid Striped Bass During 1984--20072007
FreshFreshSales Sales PricePrice
FOB FarmFOB Farm($/lb)($/lb)
AnnualAnnualVolumeVolume
(lb)(lb)
Kent SeaTech CorporationKent SeaTech CorporationData from state Aquaculture Extension Programs and a survey of mData from state Aquaculture Extension Programs and a survey of major producers ajor producers
2,000,0002,000,000
4,000,0004,000,000
6,000,0006,000,000
8,000,0008,000,000
10,000,00010,000,000
12,000,00012,000,000
14,000,00014,000,000
$2.00$2.00
$2.50$2.50
$3.00$3.00
$3.50$3.50
$4.00$4.00
$4.50$4.50
$5.00$5.00
'84'84 '85'85 '86'86 '87'87 '88'88 '89'89 '90'90 '91'91 '92'92 '93'93 '94'94 '95'95 '96'96 '97'97 '98'98 '99'99 ’’0000 ’’0101 ’’0202 ’’0303 ’’0404 ’’0505 ’’0606 ’’0707’’0808
Annual Production (lb)Annual Production (lb)
SalesSalesPricePrice($/lb)($/lb)
PricePrice--Volume Relationship for FarmedVolume Relationship for FarmedHybrid Striped Bass During 1984Hybrid Striped Bass During 1984--20082008
2,000,0002,000,000 4,000,0004,000,000 6,000,0006,000,000 8,000,0008,000,000 10,000,00010,000,000$2.00$2.00
$2.50$2.50
$3.00$3.00
$3.50$3.50
$4.00$4.00
$4.50$4.50
$5.00$5.00
12,000,00012,000,000
Kent SeaTech CorporationKent SeaTech CorporationData from state Aquaculture Extension Programs and a survey of mData from state Aquaculture Extension Programs and a survey of major producers ajor producers
14,000,00014,000,000
Financial Plan
• Key assumptions• Break-even analysis• Projected financial statements
– P & L Statement– Cash Flow Statement– Balance Sheet
• Long-term plans
Year 3 and thereafterunit price/unit ($) # unit TOTAL ($) % of total $/lb harv
Gross Receiptshybrid striped bass lb 2.50 310,080 775,200
Variable Costsfingerlings per 0.20 268,235 53,647 12.22% 0.17 1st year fingerling feed lb 0.26 125,400 32,604 7.43% 0.11 2cnd year feed lb 0.20 793,440 158,688 36.14% 0.51 chemicals acre 25.00 80 2,000 0.46% 0.01 electrical usage
aeration hr 0.85 44,700 37,995 8.65% 0.12 water supply hr 1.50 15,756 23,634 5.38% 0.08
fuelaeration hr 1.50 11,175 16,763 3.82% 0.05 misc. acre 15.00 200 3,000 0.68% 0.01
repair & maint. of equip. mo 986.25 12 11,835 2.70% 0.04 office overhead mo 50.00 12 600 0.14% 0.00 hired labor hrs 210.00 8 1,680 0.38% 0.01 pescalator rental day 500.00 10 5,000 1.14% 0.02 interest on operating funds total 20,055 4.57% 0.06 marketing cost total 1,000 0.23% 0.00 harvest (box,ice,harvest labor) lb 0.15 310,080 46,512 10.59% 0.15
Subtotal, variable costs 415,012 94.52% 1.34
Fixed Costs*payment on land and const. debt total 12,653 2.88% 0.04 payment on equipment debt total 6,420 1.46% 0.02 property taxes and insurance acre 50.00 100 5,000 1.14% 0.02
Subtotal, fixed costs 24,074 5.48% 0.08
TOTAL COSTS 439,086 100.00% 1.42
*Excludes annual depreciation, estimated at 23,708.33$
Cash Flow Summaryexpense income balance
initial equity* 351,600 (351,600) year 1 145,488 (497,088) year 2 441,449 775,200 (163,337) year 3 439,086 775,200 172,777 year 4 439,086 775,200 508,891 year 5 439,086 775,200 845,005 year 6 439,086 775,200 1,181,119 year 7 439,086 775,200 1,517,232 year 8 439,086 775,200 1,853,346 year 9 439,086 775,200 2,189,460 year 10 439,086 775,200 2,525,574
Break-even Analysis
RETURNS SUMMARYReturns to owner's management, labor, and capital
lb farm water acreReturns above variable costs 1.16$ 359,294$ 4,491$ Returns above total costs 1.08$ 333,751$ 4,172$ Breakeven price/lb above variable costs 1.34$ Breakeven price/lb above all costs 1.42$
Year 2
Year 3+ RETURNS SUMMARYReturns to owner's management, labor, and capital
lb farm water acreReturns above variable costs 1.16$ 360,188$ 4,502$ Returns above total costs 1.08$ 336,114$ 4,201$ Breakeven price/lb above variable costs 1.34$ Breakeven price/lb above all costs 1.42$
From Jolly and Clonts
Balance Sheet for Mr. John, December 31, 1991
Assets Liabilities
Current assets dollars Current liabilities dollarsBank balance 25,000 Operating loan 52,500Fish fingerings 114,570 Interest on operating loan 4,200Feed and supplies 1,075 Principal payment on mortgage 2,500
Total current assets 140,645 Interest on mortgage 3,00062,200
Intermediate assets Intermediate liabilitiesMachinery & equipment 11,810 Payment on equipment 2,270Broodstock 19,380
Total intermediate assets 31,190
Fixed assets Long-term liabilitiesLand 96,000 Mortgage 96,000Pond system 210,000Hatchery & building & well 13,510
Total fixed assets 319,510
Total assets 491,345 Total liabilities 160,470
Net worth 330,875